Reynolds Keeps 2026 Outlook After Third-Quarter EBITDA Drop

The Tip Desk · November 11, 2026 · 4 min read

Adjusted EBITDA fell to $163 million as retail volumes declined 7%, while net revenues held at $944 million.

Reynolds Consumer Products Inc. (REYN), a maker of household essentials including Reynolds and Hefty brands, reported third-quarter net revenues of $944 million, essentially unchanged from the prior quarter’s $944 million, as commodity inflation and lower retail volumes compressed profitability.

Adjusted EBITDA declined $5 million to $163 million from $168 million a year earlier, which the company attributed primarily to 7% lower retail volumes and increased selling, general and administrative costs as it continued to reinvest in the business. Net income fell to $58 million from $79 million in the third quarter of 2025. Adjusted net income was $83 million, which the company said was at the high end of its outlook, compared with $88 million a year earlier. Diluted earnings were $0.28 a share versus $0.38; adjusted earnings were $0.39 a share versus $0.42.

Retail net revenues were $865 million, nearly matching $864 million a year earlier. Non-retail net revenues, aluminum sales to food-service and industrial customers, rose to $79 million from $67 million. On a retail price/volume bridge for the three months ended Sept. 30, 2026, total company retail price was up 9%, retail volume/mix down 7%, and non-retail down 1%, for a 1% total increase.

President and Chief Executive Officer Scott Huckins said the company delivered a solid quarter in a volatile operating environment, acted decisively on commodity inflation, and delivered earnings in line with guidance. He said productivity initiatives allowed continued investment behind brands, innovation and other strategic initiatives.

Reynolds Cooking & Kitchen Essentials net revenues increased $29 million, or 9%, to $337 million, including an 18% price increase to recover input costs. Adjusted EBITDA in that segment decreased $4 million to $49 million; the company said pricing fully offset higher input costs, but lower volumes produced the year-over-year decline. Retail price in the segment was up 18% and retail volume/mix down 6%.

Hefty Waste & Clean-Up net revenues increased $4 million to $248 million, including a 5% price increase. Adjusted EBITDA increased $4 million to $76 million, which the company said was due to productivity gains across the supply chain.

Hefty Home & Tableware net revenues decreased $14 million to $186 million, which the company said was due to lower volumes driven by elasticities and continued foam declines. Adjusted EBITDA decreased $4 million to $25 million, primarily from lower volumes. Hefty Storage & Organization net revenues decreased $8 million to $172 million, reflecting volume timing after strong second-quarter promotions. Adjusted EBITDA decreased $6 million to $30 million, driven primarily by lower volumes.

The company is reiterating its full-year 2026 net revenue outlook of a range of +1% to +3% versus 2025 net revenues of $3,721 million, and its full-year adjusted EBITDA outlook of $660 million to $675 million. Given third-quarter adjustments, it now expects net income of $307 million to $320 million, with earnings of $1.45 to $1.51 a share, and adjusted net income of $332 million to $345 million. Full-year adjusted earnings guidance is unchanged at $1.57 to $1.63 a share.

Implied fourth-quarter 2026 net revenues are expected to be -3% to +3% versus fourth-quarter 2025 net revenues of $1,034 million. Fourth-quarter net income and adjusted net income are expected at $101 million to $114 million, with earnings and adjusted earnings of $0.48 to $0.54 a share. Fourth-quarter adjusted EBITDA is expected at $196 million to $211 million.

Cash and cash equivalents were $25 million at Sept. 30, 2026, with debt of $1,531 million and net debt of $1,506 million. Net debt to trailing-twelve-months adjusted EBITDA was 2.2x, which the company said was at the lower end of its target leverage range. Chief Financial Officer Nathan Lowe said leverage at the low end of the target range left the company positioned to continue investing across the business.

Subsequent to quarter-end, the company completed the acquisition of Owl’s Head Alloys for $110 million on a cash-free, debt-free basis, subject to customary post-closing adjustments, paid with cash from borrowings under its revolving credit facility. The company said the deal adds specialized aluminum processing that complements its manufacturing network and expands vertically integrated capabilities. The board approved a quarterly dividend of $0.23 a share, expected to be paid Nov. 30, 2026.